If you own property in the Austin area, chances are high that you have an insurance policy on it. You purchase homeowner’s insurance for peace of mind against the unexpected. As long as you pay your premiums, you expect your insurer to cover damage that occurs from fire, storms and other covered catastrophes. You do not anticipate the need to ever file a claim, but you know that it might become unavoidable at some point.
It is important for you to understand some common reasons insurers deny claims. Insurers must cover legitimate claims, but that does not stop them from looking for ways to deny them to avoid paying. Here are some common reasons for homeowner’s insurance claim denials.
Uncovered loss
You should review your insurance policy to ensure that your policy completely covers your property. Your policy outlines your insurer’s responsibilities and obligations toward you and your property. It also details what the insurer will and will not cover. Contrary to popular belief, insurance does not cover all types of damage.
Liability
Sometimes things happen that result in property damage caused by other people. For example, you hire an uninsured and bonded person to work on your roof. If that individual damages your home, your insurer is not responsible for paying the damages. The contractor you hired is liable. This is a good reason why you should avoid hiring unqualified and uninsured professionals to work on your property.
Deductible
If something happens to your home that qualifies for coverage, your insurer could end up denying it if the cost is less than your deductible. You should review your deductible levels to ensure they are sufficient for your situation.
Denials are not always final decisions. Depending on the circumstances surrounding your claim and your insurer’s policies, it might be in your best interest to file an appeal. Getting an insurance company to overturn a denial is not easy. If you are dealing with a denied insurance claim, you might want to speak with an attorney to learn your options.
